What is the difference between a secured and unsecured creditor?

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A “secured creditor” is a creditor that has a lien on an item of your property. The debt is secured by the creditor’s interest in the property. A lien is an interest in property that allows a creditor to have your property sold to satisfy your debt to that creditor. Examples of secured creditors are mortgage lenders and car lenders. …

Can a creditor still demand payment after I file bankruptcy?

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No, efforts by a creditor to collect a debt you owe as of the filing of your bankruptcy petition are a violation of the automatic stay.  Attempts to repossess your property without the permission of the bankruptcy court are also not permitted after you file for bankruptcy protection. If a creditor repossesses any property after you file for bankruptcy, the …

Can I be fired from my job for filing bankruptcy?

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No, your employer may not fire you solely because you filed for bankruptcy. Your employer is also prohibited from changing the terms of your employment (reducing your salary, limiting job responsibilities, demoting your position or changing your title) simply because of your bankruptcy filing.  However, if the employer has other valid reasons for taking these actions, such as tardiness, dishonesty, …

Can I Save My Home with Chapter 13 Bankruptcy?

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When faced with missed mortgage payments, many fear foreclosure and seek solutions offered by the bank directly such as loan modifications. Chapter 13 bankruptcy may be the best solution to their problem. In the repayment plan constructed during the Chapter 13 bankruptcy order, the arrears owed on the home will be factored into the repayment plan. This means that once …

How are settlements treated in bankruptcy?

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 Often someone needs to file bankruptcy because they are injured and awaiting settlement for the injuries but the bills pile up too fast during the waiting period. How are these settlements treated in the bankruptcy process? Generally, we see two types of settlements – social security or personal injury/workers’ compensation and these are each treated differently.  Social security settlements  usually …

What is a judicial lien?

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A judicial lien is created when a creditor is awarded a judgement from the court granting the creditor rights against the borrower’s property.  When a borrower fails to pay a bill he or she owes, the creditor must decide whether the amount is sufficient to warrant litigation (going to court).  If the answer is yes, the creditor will file a …

What should I do after bankruptcy?

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 Regardless of your reasons for filing for bankruptcy, you can get back on the right track if you follow these tips: 1. Create a budget. Having a written budget helps you to visualize exactly what your fixed expenses are and how much income you need. This image will help you when you are tempted to spend money on items that …

How often can I file bankruptcy?

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There are restrictions on how often you can discharge your debt and it’s often based on the type of bankruptcy you previously filed. Here is a list of the time restrictions on filing multiple bankruptcies: Chapter 7 – No additional Chapter 7 discharges for 8 years. Chapter 13 – 2 years to create another payment plan under Chapter 13 and …

How does bankruptcy affect my retirement plan distributions?

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The money you have saved or invested in most retirement plans are protected from creditors during bankruptcy. However, if you are retired and taking income distributions from your retirement plan(s) at the time you file bankruptcy, that money becomes more accessible to your creditors. The amount that can be touched by creditors depends on how much money you need to …

Will filing bankruptcy stop my landlord from evicting me?

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It depends. Whether filing bankruptcy will prevent your landlord from going through with the eviction process depends on whether or not your landlord has already obtained a judgment for possession of the property.  If you file bankruptcy after your landlord has a judgment for possession of the premises, then bankruptcy probably will not provide you much protection from eviction.  In …